ABG buys sportswear brand Reebok from Adidas

Sportswear and sneaker brand Reebok is getting a brand new residence.

Genuine Manufacturers Group, a brand administration firm with an unlimited portfolio of media and leisure firms, mentioned Thursday that it will acquire the iconic shoemaker from its present proprietor Adidas. Based in 1895, Reebok is famed for creating the primary spiked operating shoe—a method now worn by observe stars and cross-country athletes worldwide—in addition to the primary operating shoe engineered particularly for girls. Its brand companions embrace NBA Corridor of Famer Allen Iverson, rapper Cardi B, and Spice Lady-turned-designer Victoria Beckham.

“We’ve had our sights set on Reebok for a few years, and we’re excited to lastly deliver this iconic brand into the fold. Reebok holds a particular place within the minds and hearts of customers world wide,” Jamie Salter, CEO of ABG, mentioned in a information launch, noting that the shoemaker has “expansive international distribution.” In keeping with ABG, roughly 70% of Reebok’s enterprise hails from outdoors the USA and Canada.

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However regardless of its storied legacy and clout amongst pop stars {and professional} athletes, Reebok has limped financially in recent times. Its gross sales have lagged behind these of its guardian Adidas, which purchased the corporate in 2006 hoping to revitalize the historic brand. In December, Adidas revealed it was seeking to offload the struggling enterprise. Its take care of ABG is reportedly price $2.5 billion.

Genuine Manufacturers, backed by BlackRock and Common Atlantic, is probably a becoming purchaser. It at the moment has quite a lot of bankrupt companies below its wing, together with Aeropostale, Perpetually 21, Brooks Brothers, and JCPenney, and is now among the many largest operators of brick-and-mortar retail shops. Nevertheless, it’s arguably most acknowledged for heading up the estates of useless celebrities, together with Muhammad Ali, Elvis Presley, and Marilyn Monroe, in addition to the still-alive former basketballer Shaquille O’Neal, who additionally holds a stake within the firm.

The deal is anticipated to shut in early 2022. Final month, ABG filed for an preliminary public providing, which may come as early as this summer season.